In a 1031 exchange, you can purchase multiple replacement properties from different sellers. We see a lot of people double or tripling down with their exchanges. The real headache is that you have to properly identify all of these properties within your 45 day identification period.
We had a client that sold his optometrist practice but retained the building. When the new optometrist wanted to purchase the medical building, our client agreed to sell on the condition that he needed at least nine months lead time. He then used that lead time to find three brand new single family homes that he intended to use as rentals. When these new properties were ready to go, he then went back and finalized the sale of his old medical building in a 1031 exchange. This is a great way to make sure your 1031 exchange goes off without a hitch. Give yourself plenty of time and line up your replacement properties well in advance so you have plenty of time to get everything finished within the 180 day exchange period.
Plan Ahead to Ensure the Success of Your Like-Kind Exchange
If you want to ensure the success of your like-kind exchange, it’s a good idea to plan ahead. Consult with a qualified intermediary who can guide you through the steps of the 1031 exchange process and determine the viability of your exchange. At CPEC1031, LLC our intermediaries are skilled and experienced – with over two decades in the like-kind exchange industry. Reach out to our 1031 exchange professionals today to learn more about the details of your real estate exchange and see how you can save money by deferring capital gains taxes.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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